Citi’s exit from retail banking presents opportunities for local banks
The decision of American banking giant Citigroup Inc. to exit the Philippine retail banking segment presents an opportunity to other major players in the industry......»»
LandBank named best for financial inclusion
The Land Bank of the Philippines, or LandBank, was recognized by Kantar Philippines as one of 2023’s Best Philippine Brands under the “Banking” category for providing convenient, accessible and innovative banking services to unbanked and underserved Filipinos nationwide. Kantar conferred the award to LandBank for its strong brand of service, decades of empowering the underserved, and for advancing financial inclusion in the country through the accessibility of its integrated physical and digital banking services. The market research firm also highlighted the Bank’s efficient delivery of cash grants to beneficiaries of the National Government’s social amelioration programs, particularly the digital disbursement of financial assistance under the Conditional Cash Transfer Program. “This recognition is a testament to LandBank’s unwavering pursuit to reach and serve more Filipinos nationwide. We are continuously working towards the strategic expansion of our physical touchpoints and the enhancement of our digital channels to deliver exceptional and accessible banking service,” said president and CEO Lynette V. Ortiz. In support of the National Government’s financial inclusion drive, LandBank has also onboarded 8.35 million Philippine Identification System, or PhilSys, registrants for their own transaction accounts, under the Bank’s co-location strategy with the Philippine Statistics Authority. The partnership aims to bank previously unbanked PhilSys registrants and grant them formal access to basic banking and other financial services. LandBank likewise has 1,111 agent banking partners, or ABPs, nationwide offering services such as cash out, cash in, fund transfer, bills payment, and opening and issuance of LandBank Agent Banking Cards in unbanked and underserved communities. The bank also offers individuals who have no capacity for operationalizing a regular deposit savings account to open a LandBank “Perang Inimpok Savings Option” or PISO account with only P1 as minimum initial deposit and up to a maximum of P50,000 account balance. As of end-August 2023, LandBank has opened 52,406 PISO accounts for unbanked and underserved Filipinos including students, public utility vehicle drivers, vendors, farmers and fishers. Kantar BrandZ report LandBank was recognized for its strong brand image in the Kantar BrandZ Philippine Report, which was based on a comprehensive survey conducted in 2022 covering 44 local brands across four categories — banks, communication providers, general retailers and beverages. Kantar is a global marketing and data analytics company that specializes in analyzing, understanding, and interpreting consumer behavior and trends. The 2023 Philippines Brand Awards is the first edition held by Kantar Philippines in the country to honor the top brands that bring value to the lives of Filipino consumers. The post LandBank named best for financial inclusion appeared first on Daily Tribune......»»
Half of finance work could be AI by 2030
Dear Editor, The G.M.A. Integrated News unveiling of A.I. sportscasters Maia and Marco last 24 September captivated many people during the start of the National Collegiate Athletic Association or NCAA Season 99. This groundbreaking introduction sparked intense discussions on social media about Artificial Intelligence’s potential implications on journalism’s future. People expressed a mix of excitement and apprehension, highlighting the need for further exploration and understanding of AI’s role in shaping the field of journalism. As Artificial Intelligence advances at an unprecedented rate, it is not only in journalism where AI can automate work. According to McKinsey, by 2030, approximately half of the finance work could be automated. This automation will bring opportunities and challenges, as AI can streamline processes and improve efficiency. The finance areas that have already started to be automated are the banking and financial institutions, risk assessments, credit scoring, customer service, and market sentiment analysis. In banking and financial institutions, an AI called KAI-GPT can auto-detect risks, generate insights, and make financially literate recommendations. Launched on 31 May 2023, KAI-GPT is the world’s first banking-specific large language model designed to address the industry’s unique accuracy, transparency, trustworthiness, and customization needs. The KAI-GPT provides a human-like, financially literate response. Westpac, Australia’s first bank and oldest company serving more than 12 million customers, is in the process of implementing KAI. Meanwhile, in risk assessment, the tool DataRobot AI can simulate potential fraud scenarios and detect credit risks, fraud risks, and market volatility. Using predictive and generative DataRobot AI improves the technical ecosystem in Financial Services. Sanlam, Africa’s largest non-banking financial institution, uses DataRobot AI, resulting in more streamlined and transparent solutions, driving critical business value levers such as sales and client retention. In the finance area of credit scoring, the Personetics and AIO Logic can detect risk, determine rates, and structure customer loans. Personetics serves over 140 banks and financial institutions across 30 global markets, reaching 135 million banking customers. United Overseas Bank, a Singapore-based Banking and Financial Services organization with 24346 employees and revenues of $9790000.00 billion, uses Personetics. AIO Logic is well known as an AI for Automated Payment Management, Automated Balance Management, Automated Accounting, Complex Structures, Automated Invoicing, Automated Reporting and Analytics. These two credit scoring AI can also assess customers’ creditworthiness and set credit limits. In customer service, robo-advisors, chatbots, and virtual assistants provide a conversational system fit for financial planning assistance. Robo-advisors offer financial advice and limited human interaction, which appeal to Generation Z, who have virtual interactions with advisors and are increasing interest in novel assets like cryptocurrency. The AI is now also in market sentiment analysis, and Bloomberg G.P.T. shows how to automatically analyze news, articles, social media and other classified textual data. Launched on 30 March 2023, Bloomberg GPT is a significant language model with 50 billion parameters trained explicitly on a wide range of financial data. It can perform market sentiment analysis and even help manage investment portfolios. These advancements in AI technology have the potential to significantly streamline and automate many tasks in the finance industry, reducing the need for human intervention. The applications of generative AI in Finance will be widely seen in regulatory compliance and reporting, financial forecasting, portfolio optimization, anti-money laundering and algorithmic trading. However, it is essential to note that while AI can enhance efficiency and accuracy, it is not a substitute for human expertise and judgment. Human oversight and decision-making will still be crucial in navigating complex financial landscapes and ensuring AI technologies’ ethical and responsible use. Still, job displacement in finance may occur, and the need to upskill the workforce is now paramount. Arnel Lopez Cadeliña arnelcadelina@gmail.com The post Half of finance work could be AI by 2030 appeared first on Daily Tribune......»»
BSP: Foreign investments down in August
The country’s net inflow of foreign investments registered with the Bangko Sentral ng Pilipinas decreased to $153 million in August from $962 million in July. The BSP on Friday reported that this resulted from $1.4 billion gross inflows and $1.3 billion gross outflows of foreign investments with BSP through its agent banks. The gross inflows declined by 8.6 percent or $136 million month-on-month. Majority of the foreign investments came from securities listed in the Philippine Stock Exchange which comprised 74.2 percent of the total and amounted to $1 billion. The highest volume of securities transactions was seen in banking, followed by property, holding firms, food and beverage, tobacco, and transportation services. Peso-denominated securities Meanwhile, peso-denominated government securities comprised 25.8 percent and totaled $372 million. Investments in August mostly came from Japan, the United Kingdom, United States, Luxembourg and Singapore which collectively represented 88.9 percent of all countries with Philippine-based investments. Gross outflows, on the other hand, rose in August by 109.5 percent or $673 million from the July level. Majority of the lost investments or 59.2 percent were redirected to the US which received $762 million. From January to August, net inflows of foreign investments to the Philippines registered with BSP stood at $311 million, down from $589 million in the same period last year. The post BSP: Foreign investments down in August appeared first on Daily Tribune......»»
Digital Banks vs. Traditional Banks Learn the Pros and Cons
Digital services are rapidly expanding in today’s fast-paced world, offering the convenience of handling numerous tasks online, such as banking. This trend has gained significant momentum, leading to a decrease in face-to-face interactions. However, does traditional banking still make sense in 2023? Should we shift to online banking? Or the combination of both is the […].....»»
SBCorp.: Financing gap yawns P400B
Department of Trade and Industry attached agency Small Business Corporation is seeing the financial gap, or the inability of private banks, lending firms, and the government’s lending arms to provide loans is now ranging from P300 billion to P400 billion. “Even if we put together government banking institutions providing loans to entrepreneurs, as well as savings and loans associations and cooperatives, the country’s financial gap still lacks from P300 to P400 billion. That’s our estimate based on our study,” Robert Bastillo, SBCorp president, exclusively told the DAILY TRIBUNE during his interview in the paper’s online show, Straight Talk. Bastillo said this is the main reason why small entrepreneurs have become baits to traditional loan sharks, colloquially known as the “5-6” scheme associated with Indian nationals, instead of formal sources of loans. They would rather close shop “This was also the reason why some businessmen opted to stop their enterprises due to this financial gap problem in the country. They would rather close shop. In fact, the International Finance Corporation estimated that the financial gap in the country is from P12 to P13 trillion, but we contradicted that because the economy of the country is not that huge,” he said. Bastillo said the whole portfolio of the banking sector in the country is approximately P8 trillion. With the huge financial gap, Bastillo said SBCorp’s P10 billion budget allocation is indeed not enough to fill in the gap. He said that’s why they have formulated programs to influence the financing sector so that MSMEs will look fundable to financial institutions, just like SBCorp’s P3 or the Pondo sa Pagbabago at Pag-asenso program. The P3 Program is a financing initiative by government to assist micro-entrepreneurs throughout the country by providing affordable and cost-efficient microloans, “But if the P3 will be coursed through cooperatives, then we give only a 2 percent interest rate per year. Cooperatives can stretch the interest rate by as much as 30 percent per year. But cooperatives nowadays provide only a 2 percent interest rate,” according to Bastillo. Bastillo said that if the P3 is directly availed from SBCorp., they will provide the loan at one percent per month or 12 percent per year, but with a diminishing effect, compared to other private banking institutions. Good players MSMEs that are good payers can be rewarded by a lower interest rate of up to 10 percent per annum if they will avail of another loan, Bastillo said. The scheme is a funding program that will provide an alternative source of financing for microentrepreneurs that is easy and quick to access, and is seen to give a boost to the micro enterprises sector, which comprises the bulk of Philippine micro, small, and medium enterprises. The program also aims to stabilize informal lending, locally known as 5-6 lending, and prevent micro-entrepreneurs from falling victim to usurious lenders. Added funding Meanwhile, Bastillo insisted that if funding for the SB Corp. is added by the government, more microloans will be ushered into MSMEs. “If the capital of P10 Billion, provided by the Magna Carta for MSMEs, will be raised around P50 to P100 billion, then we will be able to help more borrowers. However, it would take time to realize this, as amendments are needed to the Magna Carta for this request. Right now, it is still at the Committee level at the House of Representatives,” according to Bastillo. The post SBCorp.: Financing gap yawns P400B appeared first on Daily Tribune......»»
Fortifying digital finance (3)
Banking Bangko Sentral ng Pilipinas, or BSP, also issued regulations to safeguard consumers in the financial marketplace. On 28 November 2022, BSP issued Circular No. 1160, series of 2022, to implement Republic Act 11765 or the Financial Products and Services Consumer Act. BSP required Bangko Sentral-Supervised Institutions or BSIs like banks, trust companies, and e-money issuers to establish a single Financial Consumer Protection Assistance Mechanism. The FCPAM shall provide free assistance to financial consumers on their concerns with the financial products, services, and/or transactions with the BSI. This is a first-level recourse mechanism to handle consumer complaints, inquiries, and requests. Accordingly, BSP required BSIs to adopt simplified requirements and procedures for the availment of the FCPAM by financial consumers. Financial consumers unsatisfied with the BSI’s handling of their complaints, inquiries, or requests at the FCPAM level may escalate their concerns with the BSP Consumer Assistance Mechanism or CAM. BSP laid down the rules of procedure for CAM and the Mediation and Adjudication of Cases in Circular No. 1169, series of 2023, on 24 March 2023. Complaints may be filed with the Consumer Protection and Market Conduct Office either personally or through the BSP Online Buddy Chatbot, postal mail, courier, electronic mail, or other electronic means. Consumers may also request assistance in filing their complaints from the BSP regional offices or branches. Complainants have the option to proceed with either mediation or adjudication after resorting to the CAM. Aside from the establishment of CAM, BSIs are mandated to integrate the Consumer Protection Risk Management System into their enterprise-wide risk management processes and risk governance framework. The CPRMS shall be the foundation for ensuring BSI’s adherence to Consumer Protection Standards of Conduct, particularly (a) disclosure and transparency; (b) protection of client information; (c) fair treatment; (d) effective recourse; and (e) protection of consumer assets against fraud and misuse. In line with these standards, BSIs are prohibited from employing abusive collection or debt recovery practices against financial consumers. BSIs are likewise made solidarily liable with their accredited or authorized agents, representatives, or third-party service providers for their acts or omissions in marketing and transactions — which may include debt collection — with financial consumers for its financial products or services. The protection afforded to financial consumers by the regulations implemented and enforced by the financial regulations aims to fortify the growth of the financial services industry as it navigates the digital platform. For more of Dean Nilo Divina’s legal tidbits, please visit www.divinalaw.com. For comments and questions, please send an email to cabdo@divinalaw.com. The post Fortifying digital finance (3) appeared first on Daily Tribune......»»
Strong local banks buttress economy
The strong banking system is considered a source of strength for the economy, Bangko Sentral ng Pilipinas Deputy Governor Francisco Dakila Jr. declared during the Philippine Economic Briefing on 12 September 2023 in Dubai. The economic team visited the Middle Eastern country to discuss investment prospects in the Philippines, updates on the economy, the government’s spending priorities, fiscal and infrastructure programs, and recent reforms that further opened the economy to foreign investors. Around 80 senior executives representing investment funds, corporations, business associations and the media participated in the roadshow. Dakila said banks are well-capitalized with a capital adequacy ratio, or CAR, of 16.4 percent on a consolidated basis as of the end of last March, above the minimum thresholds set by the BSP and the Bank for International Settlements. Efficient funds conduit The Philippine banking system’s assets, deposits and profits also grew year-on-year by nine percent, eight percent, and 26.1 percent, respectively, in June this year. “Indeed, the country’s banking system continues to be an efficient and responsible intermediator of funds,” he added. BSP Assistant Governor Arifa Ala also highlighted the government’s efforts to promote Islamic finance, including the issuance of its first sovereign Sukuk or Shari’ah-compliant bonds, which can expand the Philippines’ engagement with Islamic financial markets. Sukuk are certificates that represent shares in the ownership of assets, services, projects, or investment activities. These are issued under Shari’ah principles. Speakers of the PEB in Dubai included Ambassador to the United Arab Emirates Alfonso Ferdinand Ver, Department of Finance Secretary Benjamin Diokno, Budget Secretary Amenah Pangandaman, National Economic and Development Authority Secretary Arsenio Balisacan, Standard Chartered regional head of global subsidiaries Shada Elborno, and MUFG Global Corporate and Investment Banking MENA chief executive officer Elyas Al Gaseer. The post Strong local banks buttress economy appeared first on Daily Tribune......»»
Phl phishing attacks highest in SE Asia, linked to 2% loss in GDP
At least two percent of the global Gross Domestic Product was lost due to increasing cases of online fraud, phishing, and scams, Senator Mark Villar said Monday. Villar, presiding over the hearing by the Senate Committee on Banks, Financial and Institutions and Currencies, lamented that the proliferation of online scams threatened not only the potential of online banking but also the stability of the banking system and the hard-earned money of the Filipino people. “While digitalization and the widespread use of digital finance opened opportunities for the banking sector, it is also apparent that opportunists also devise new methods to take advantage of this emerging financial market,” Villar said. While there’s an increasing number of Filipinos using online payment platforms, Villar noted that crimes related to digital financial transactions are also growing. “A significant number of Filipinos have been targeted by digital fraud attempts and a portion of them eventually fall victim to it,” he said. The Bangko Sentral ng Pilipinas said it has received more complaints regarding online banking transactions compared to those related to using Automated Teller Machines and credit cards, among others. In fact, the Anti-Money Laundering Council reported a rise in suspicious transactions in 2020 comprising acts of phishing, skimming, and transactions related to money mules. The Security Exchange Commission likewise noted a significant rise in complaints related to online fraud committed by online lending platforms. Villar said as these scammers take advantage of their victims, they also rattle their victims' trust in the country’s banking and financial institutions. “Trust, being the currency of the banking system, must be well-earned. Given the proliferation of online fraudsters, it is imperative that we strengthen our efforts to keep scammers at bay,” he added. Among the existing laws aimed at fighting online bank fraud include Republic Act 11765 or Financial Products and Services Consumer Protection Act; the RA 11934 or Subscriber Identity Module (SIM) Registration Act; and RA 10175 or Cybercrime Prevention Act of 2012. Villa said as criminal elements adapt to legislation to perpetuate fraud, hence, “there is a need to legislate new laws to keep them off track” such as the proposed Anti-Financial Account Scamming Act. “This measure will reinforce and earn back the public’s trust in our financial institutions,” he said. The number of phishing attacks in the Philippines during the first half of 2022 already surpassed the number of attacks at over 1.8 million detected compared to 1.34 million attacks during the entire year of 2021. Villar described the spiking cases of online scams as “extremely concerning.” This, as data from Kaspersky Security Network revealed that cases of financial phishing attempts in the Philippines from February to April 2022 were highest in Southeast Asia. Villar emphasized that the Anti-Financial Account Scamming Act or AFASA will evidently deal with cases of online fraud and will provide a regulatory framework that penalizes scammers as well as entails safeguard measures to protect Filipinos and their financial accounts. “Because of the lack of a regulatory framework that penalizes these scammers, there are and there will be more victims in the foreseeable future,” he added. AMLC executive director, Matthew David, said they required banks and payment operators to maintain the 'Know Your Customer document' for their system and store a system that could verify the identity of the clients, including the bank account owners. “They are required to do some verification in order to make sure the true identity of the customers,” David added. The public committee hearing was followed by an Executive Session due to the confidentiality and sensitivity of the issues and information that will be discussed. Villar said the executive session was conducted to ensure that law enforcement measures being undertaken to apprehend and prosecute scammers will not be disrupted. The post Phl phishing attacks highest in SE Asia, linked to 2% loss in GDP appeared first on Daily Tribune......»»
The Advantage of Adopting the Right Digital Tools for your Business
Amid the uncertainty in customer behaviors and trends from the crisis, this much is clear: updating the business for a digital-first world, led by purpose, is now a must for almost every company. To do so, they must determine where new business value exists in the new normal, what digital business models will capture it, and which tools and behaviors will support the adaptability and resilience that these models require. On this section, we talked to the creators behind the award-winning platform made for businesses like yours. The Digital Advantage Companies need an understanding of 3rd Platform technologies to capitalize on improved decision-making and to deliver enhanced, customized experiences to stakeholders. The rapid acceleration of 3rd Platform technology adoption means that corporates need to actively be looking for ways to improve their operational efficiency and customer service, otherwise, they will be in danger of falling too far behind digitally-native competitors to ever catch up. Efficiency Past recessions show that controlling costs by improving operational efficiency—a task for which digital solutions are perfectly suited for—is more effective in sustaining businesses through financial turbulence than traditional cost-cutting measures alone. The biggest efficiency play is automation. Streamlining operations and automating manual processes result in greater speed, less waste and more focus on revenue-generating activities. The economics of automation is simple: the same work is performed faster and with fewer mistakes, while human capital resources can be redeployed to higher-value tasks or to fill critical gaps. Convenience Company bank accounts are available in any device, the only things you need are internet connection and a few taps on the screen. This brings about an increase in customer satisfaction as they are able to constantly keep track of their account balances and manage the information on their personal profile (i.e. add new mailing address, e-mails, telephone numbers, etc.). In addition to this, there is no need to go to the bank to get checks as they can be instantly sent via email. 24/7 Reliability Online banking services are available 24/7 all year round, even on weekends. There is no need to line up and wait for the bank to open in order to conduct certain operations. This is a huge advantage that comes with digital solutions Security With all the recent news about data breaches, you might be wondering about the security of mobile and online banking. Security is top priority for banks when choosing whether or not to offer online banking. All banks use “Pentagon-grade” encryption technology and sophisticated firewalls. Mandatory security upgrades are required by bank regulators, so you can be confident that keeping your information secure is one of your bank’s utmost priorities. As digital transactions increase and productivity grow, companies must take proactive steps to protect their data privacy and security and adopt models that give them governance over their data. Today’s Platform Driven Solutions Self-service account management, bills payment and electronic fund transfers are considered the basic banking functions that each business should have. Account management allows viewing of account balances and transaction history without going to the bank. All these were made easy and accessible, by just logging into UnionBank’s The Portal app. Bills Payment, on the other hand, gives businesses access to a large list of billers. They can pay their water, electricity, telco, and other utilities online. BIR ePayment is also available, allowing users to pay taxes online. If the company is an accounting firm, they can also pay for their client’s taxes on The Portal app. Electronic fund transfers save companies time and reduce their risk exposure. Just upload the batch crediting file on the platform and it automatically disburses it to their recipients. Clients can also set up their recipients in UnionBank Business Banking so they receive email and SMS notifications every time they are credited. All these are made possible without stepping inside a branch. Batch Electronic Funds Transfer is also now made available for UnionBank Transfers and PESONet. This enables the streamlining of bulk account to account transfers to another UnionBank account or to other bank accounts. This has highlighted the ease and convenience of going digital to corporate clients versus processing transactions through the traditional way of banking over-the-counter or paying via cheques. Going beyond the basic functions of a normal digital banking tool, The Portal’s self-enrollment feature allows businesses to conveniently self-enroll their nominated accounts and users through the simple enrollment steps. Once completed, access to The Portal is granted and clients may enjoy the convenience of processing their funds transfer instructions online. In addition, there is an option to initiate the enrollment of the beneficiary accounts individually or in bulk. This can be essential for clients that need a payee maintenance feature to ensure that the initiated transactions are only credited to enrolled account. With the convenient, hassle-free and straight-through processing in The Portal, businesses can easily push fund transfers in the comfort of their own homes or offices. This pandemic serves as a widespread test case for the effectiveness of these digital solutions, many of which will be permanent fixtures and lead to long-term changes for many businesses. Organizations that embrace digital solutions have greater resiliency in the face of adversity and are way ahead of the competition, which will enable them to recover faster and pivot from playing defense to chasing growth. While many believe it is too idealistic to have a good workplace culture and excellent compensation, many jobseekers significantly consider these two factors when applying for a job, according to two studies. The 2021 Employee Experience Survey by Willis Towers Watson reported that 89 percent of respondents believe a positive employee experience is a crucial driver of engagement, while a 2023 survey from the online recruitment platform JobStreet found that 53 percent of Filipino job seekers would like to know the salary range offered while still in the recruitment process. Aside from great benefits and compensation, employees in the IT industry pointed out that a good work culture and environment, as well as training programs, are the top priorities of job seekers. Vanessa Liwanag, business development director at Yondu, acknowledged the company’s role in her growth, “Yondu has helped me develop my leadership, decision-making, and communication skills through its effective leadership training programs. The company also helped me grow personally because of its hybrid setup. This allows me to have a work-life balance. I can still care for my family and health while contributing to the organization.” Leather, who specializes in securing networks from vulnerabilities, noted that training programs are essential as trends continuously evolve. IT professionals need to keep up in order to be efficient. Steph, a software solutions engineer, echoed this, adding that since the industry is highly competitive and fast-paced, getting equipped with the right skills and knowledge is essential. Grace, a malware researcher, said that one advantage in the IT field is that since it’s a broad industry, there is always much to learn and room for improvement. Yondu, an IT solutions company wholly owned by Globe, offers all these benefits and compensation, a good working environment, and training programs to Yondudes, a nickname for its employees. Competitive pay and benefits are OK for Yondu as the company ensures this through regularly benchmarking market data and best practices. There are also tailor-fitted rewards programs according to talent segments. Yondu also ensures its employees remain competitive and well-equipped by industry standards through various training, reskilling, and upskilling programs to hone their skills in the constantly changing tech industry. Despite the fast-paced sector continuously evolving, Yondu still values work-life balance and provides programs to support Yondudes’ well-being further. “What sets Yondu apart from other organizations is its genuine focus on understanding and supporting its employees,” said Javen Babac, lead application support specialist at Yondu. “The company recognizes that employees perform their best when they feel valued and supported, and this philosophy sets Yondu apart by fostering a positive and inclusive work environment. The organization’s commitment to understanding its employees and providing the necessary resources demonstrates its dedication to employee well-being and sets a strong foundation for professional growth and job satisfaction.” The post The Advantage of Adopting the Right Digital Tools for your Business appeared first on Daily Tribune......»»
BSP urges free service fee for small fund transfers
The Bangko Sentral ng Pilipinas plans to issue a payments framework aimed at removing transaction fees for small fund transfers. BSP Governor Eli Remolona Jr. on Thursday said central bank officials have also been talking with e-wallet firms and other digital financial services providers to create the framework which will require financial firms to offer free fund transfers for small amounts. He said only three major banks are offering such service so far amid the lack of formal guidelines and directive from the BSP. Shame major banks “We’re trying to shame other major banks into following the same service. We’re formalizing it through a payments framework, and we’re in touch with GCash, Maya and other digital financial services providers,” Remolona said Thursday during the Global Policy Forum on Financial Inclusion organized by the Alliance for Financial Inclusion at the Philippine International Convention Center in Pasay City. With zero fees for small fund transfers, Remolona said more Filipinos would be encouraged to avail of banking services like deposit accounts, build wealth, and promote equitable financial service. “In general, we want to make sure the poor do not subsidize the rich. If you have a credit card and a big spender, you can get rewards. Guess who pays for the rewards? It’s the poor guys who only use small amounts in their transactions and get charged,” the BSP governor said. As more Filipinos own deposit accounts even with small funds, Remolona added banks and other lenders can strengthen their capital capacities. “We’ve found that when deposits are small, they become sticky and depositors don’t run away at the first sign of trouble. If you can lend to the poor, you have a more diversified portfolio and so it’s safer for banks,” the BSP governor said. Manila Manifesto During the Global Policy Forum on Financial Inclusion attended by over 700 foreign bankers and other stakeholders, Remolona announced the Manila Manifesto. This is a commitment by the Philippines to collaborate with other state-members of the Alliance for Financial Inclusion or AFI on developing global standards for making financial products and services safe, accessible and affordable for all. AFI reported 1.4 billion people worldwide still cannot access financial services due to a range of factors, such as financial illiteracy and lack of Internet connection and digital banking platforms. “In the 15 years since AFI was created, with substantive support from the BSP, our members have brought over 840 million people into the financial system via enlightened national policies and strategies on financial inclusion,” Dr. Alfred Hannig, AFI executive director, said. The post BSP urges free service fee for small fund transfers appeared first on Daily Tribune......»»
UBS’s Credit Suisse takeover, ‘deal of the century’?
Did banking giant UBS make "the deal of the century" when it bought one of the world's biggest banks for a pittance as it teetered on the edge of the abyss? Switzerland's largest bank was in March strong-armed by Swiss authorities into a $3.25-billion takeover of Credit Suisse, to keep its closest domestic rival from going under. At the time, investors gasped at the risks UBS was taking on with the purchase. But by August, the bank said it would not need the billions in support offered by the Swiss government and central bank to offset any surprises that might pop up in its stricken rival's accounts. That must mean that Credit Suisse's situation was "much better than described in March", Thomas Aeschi, a member of parliament with the populist rightwing Swiss People's Party (SVP), wrote on X, formerly Twitter. UBS seemed to prove him right when it unveiled its second-quarter results on August 31. The bank posted a towering net profit of $29.2 billion for the three-month period, thanks to an exceptional gain due to the gulf between the amount paid for Credit Suisse and its book value. 'Godsend' "UBS has pulled off the deal of the century," Switzerland's Socialist Party said, maintaining the "rescue" was more of a "godsend", allowing it to snatch up a bank at a dramatically reduced rate. "If we had chosen another path, (like) a temporary or partial nationalization," said Samuel Bendahan, a Socialist MP and economics professor at the University of Lausanne, the Swiss state "would have taken on the risk, but those $29 billion would have gone to the population". Instead, the takeover has created "a monopolistic situation", he told AFP, warning that while this might strengthen UBS, it puts Switzerland in an extremely risky position if the new mega-bank were to one day face a crisis. Politicians are not the only ones taking issue with the takeover. Gisele Vlietstra, founder of the Swiss Investor Protection Association, told public broadcaster RTS that UBS's towering quarterly profit confirms that the "intrinsic value" of Credit Suisse was "far higher" than the purchase price. She said she hoped that the lawsuits brought by her association and others on behalf of thousands of Credit Suisse shareholders will help determine "the correct value" that they should be compensated. 'Nickel and dime' "UBS paid a nickel and dime" and "got rid of its main competitor" in one fell swoop, Carlo Lombardini, a lawyer and banking law professor at Lausanne University, told AFP. The coming restructuring will clearly carry risks, "but having paid just three billion, it can't go wrong", he said, slamming the option chosen by the Swiss authorities. Like UBS, Credit Suisse was listed among 30 international banks deemed too big to fail because of their importance in the global banking architecture. But the collapse of three US regional lenders in March left the firm looking like the next weakest link in the chain. The Swiss government feared Credit Suisse would have quickly defaulted and triggered a global crisis, shredding Switzerland's reputation for sound banking. But its chosen option for dealing with the issue was certainly a boon to UBS, which will now swell to manage $5 trillion of invested assets. Confidence 'evaporated' UBS chief Sergio Ermotti acknowledged in a recent interview with the SonntagsZeitung weekly that the bank had been "worried" about its competitor since 2016, and had among other things looked into the possibilities of buying it, for fear a foreign lender might snap it up. He acknowledged that Credit Suisse may have survived for a time if the central bank had injected more cash, "but it would not have been enough, since confidence had evaporated". Since the takeover announcement in March, UBS has seen its share price soar 31 percent. But the bank still faces significant challenges, Vontobel analyst Andreas Venditti told AFP. The $29 billion "is a huge one-off gain, but this is just accounting", he said, stressing that "the losses and costs will come later". The analyst, who a few months ago wondered in a note whether UBS had secured "the deal of the decade or a decade of headaches", stressed that "it's going to be a huge task". He said it would only become clear "whether it was worth it" after most of the restructuring is done three years down the line. Parts of the business are continuing to "produce huge losses", he said, warning "many things can still go wrong". Swissquote analyst Ipek Ozkardeskaya agreed, recalling that "UBS was forced" into the merger. Now it is up to the bank to "transform an 'obligation' to its advantage". The post UBS’s Credit Suisse takeover, ‘deal of the century’? appeared first on Daily Tribune......»»
Phl economic team to woo investors in Middle East
The Philippine economic team will perform a roadshow and briefings throughout the Middle East this week to attract new investors in the country, the Department of Budget and Management (DBM) said on Sunday. In a statement, DBM said the economic team will hold the roadshow in Doha, Qatar on 10 September and another Philippine Economic Briefing (PEB) in Dubai, UAE on 12 September after successful briefings in Europe, Washington D.C., Singapore, Japan, and Canada this year. Finance Secretary Benjamin Diokno will give the keynote address for both programs, followed by Budget Secretary Amenah Pangandaman, who will present priority expenditures, including climate change, sustainability, and maintaining infrastructure spending at 5–6% of GDP over the medium term. Bangko Sentral ng Pilipinas Deputy Governor Francisco Dakila Jr. will discuss the monetary, external, and financial sectors. On the other hand, National Economic and Development Authority Secretary Arsenio Balisacan will discuss infrastructure investment and development. Budget Undersecretary Margaux Salcedo and HSBC Head of Communications in Middle East, North Africa, and Turkey Nick Edwards will lead a panel discussion on the Philippine economy and investment possibilities after the presentations. The Economic Team will also meet with banks, financial institutions, and other investors from both nations in small groups. BSP, DOF, Philippine Embassy in Doha and Abu Dhabi, Philippine Consulate General in Dubai, Philippine Trade and Investment Center Dubai, Dubai Islamic Bank, Citi, Deutsche Bank, Goldman Sachs, HSBC, MUFG, Standard Chartered Bank, and others co-organize the event. The post Phl economic team to woo investors in Middle East appeared first on Daily Tribune......»»
Cloud aids banks scale up operations
One of the world’s leading open platforms for composable banking, Temenos, underlined that cloud applications can help banking institutions efficiently scale up operations. Temenos serves 3000 banks from the largest to challengers and community banks in 150-plus countries by helping them build new banking services and state-of-the-art customer experiences. Temenos Banking Cloud, the company’s SaaS offering, is used by over 700 clients across more than 30 jurisdictions. During Temenos Cloud Forum 2023 forum for bank professionals in the Philippines, graced by representatives from the leading banks in the country, Temenos Financial Services Partner for Ernst and Young, Anurag Mishra, discussed “Banking Transformation” explaining that the cloud could help banks to efficiently scale their operations and design customer experiences which are more engaging. “One of the most important shifts that is happening is on the customer side. Banking is going to transition while customers are demanding ‘hyper-personalization’ and that requires new technologies. Today is the best time to shift from a technology perspective because the number of options to deliver on customer experience is huge and the cloud can solve specific problems,” according to Mishra in his presentation. On the other hand, Temenos Business Solution Lead for ASEAN, Rishi Sarin, explained the changing landscape and the challenges in the banking industry. “In a recent report published by Accenture “The ultimate guide to banking in the Cloud 2022,” 94 percent of banking respondents said that about 50 percent of all their banking business and technologies will migrate to the cloud in the next three years, while cloud adoption increased 2x in 2022 compared to 2021. There are currently huge investments by Cloud providers in the market so when we offer it as a service, it’s not only the reliability that comes in, but we can also provide security, stability and resilience,” Sarin said. He reiterated that the traditional set-up in which banks usually manufacture and distribute their own products, is changing fast as end-customers are demanding financial services at the point of need and it doesn’t necessarily matter to them who is providing those services. This fundamental shift is giving rise to new business models like embedded finance or Banking-as-a-Service. Temenos Principal Solution Consultant for Digital Banking Solutions for Asia-Pacific, Bala Carcharla, highlighted the three stages of “Lifestyle Banking.” The post Cloud aids banks scale up operations appeared first on Daily Tribune......»»
Even Indian lenders drawn to SBCorp’s P3
A high-ranking official of a Department of Trade and Industry-attached agency has revealed that even traditional Indian lenders based in the Philippines want to avail of the Pondo sa Pagbabago at Pag-Asenso, or P3, Program of the government. Small Business Corporation or SBCorp president and CEO Robert Bastillo made the revelation when he guested on the second Daily Tribune’s Asian Innovation Forum on Tuesday. He said half of the funds allocated to P3 are meant for cooperatives, micro-finance institutions, and private financing companies that have members that can easily access micro-entrepreneurs, particularly those who own sari-sari or small stores. “P3 was conceptualized to combat loan sharks or informal money lenders. When we visited a cooperative in a municipality in Bicol recently, we discovered that Indian lenders were now lowering their interest rate to 5 percent per month,” Bastillo said. “Surprisingly, some Indian lenders even wanted to avail themselves of our P3 program. If that is the case, it means the program has an impact,” he added. He explained that SBCorp is ready to provide funding to micro and small entrepreneurs to eventually expand operations in the long run or when banking institutions are not yet ready to provide MSE loans to them due to a lack of a banking track record. “That is why we are asking Congress to add more funds to SBCorp. The current fund is not enough to help MSMEs in their entrepreneurial journey,” he said. SBCorp estimated that there is a P300 to P400 billion financing gap in the country, which means that banking institutions, even cooperatives, and microfinancing institutions are not able to respond to the needs of MSE lenders. “We are asking for P50 billion for our total capital, including our current fund. While for the P3, we are aiming to make it a full-fledged law for it to have automatic appropriations. We aim that 10 to 15 percent of the current financing gap will be given to us, enough to serve MSEs and cooperatives, among others,” he said. In March 2023, the House of Representatives approved on third and final reading of House Bill 7363, or the proposed P3 Act, with an overwhelming 278 votes. The “P3 Act aims to provide an affordable, accessible, and simple financing program for MSEs, especially those in the poorest populations and underserved areas. HB 7363 mandates the creation of the P3 Fund, which shall be lent out to qualified MSEs under such terms and conditions that will meet the purposes of the Act. The P3 Fund shall be accessible through the SBCorp. and accredited partner financial institutions such as rural banks, thrift banks, development banks, cooperative banks, cooperatives, non-stock savings and loan associations, microfinance non-government organizations and lending companies. Currently, the P3 Program, with an annual allocation of P1.5 billion from the national government, is intended to provide micro-entrepreneurs with an alternative source of financing that is easy to access at a reasonable interest rate, that is in a safe environment away from dubious practices of informal lenders, and that is sustainable as delinquent borrowers are effectively barred from borrowing in the next loan cycle. Under the P3 Program, a microenterprise can borrow between P5,000 and P200,000, depending on its business status and repayment capacity, with no collateral requirement. Interest rates and service fees, all in, do not exceed 2.5 percent monthly. The post Even Indian lenders drawn to SBCorp’s P3 appeared first on Daily Tribune......»»
US regulators unveil new bank rules to improve financial stability
US regulators have announced plans for new banking rules to mitigate against future failures, as they move to prevent a repeat of the rapid banking collapses seen earlier this year. A bank run on the midsized Californian lender Silicon Valley Bank (SVB) in March over interest-rate concerns quickly spiraled into one of the most acute banking crises in years. It caused the collapse of a number of regional banks and the merger under pressure of Swiss banking giant Credit Suisse with regional rival UBS. In response, the US Federal Reserve's vice chair for supervision, Michael Barr, announced a review into the collapse of SVB and other banks, which concluded that both regulators and the bank's management had made mistakes. On Tuesday, US regulators including the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) published a series of statements requesting comment on two new measures aimed at shoring up banks to better weather future crises. One proposal seeks to ensure midsized banks with more than $100 billion in assets hold more long-term debt to improve financial stability and make it easier to resolve future failures, limiting the risk of contagion when a bank is under stress. "By requiring each large bank to maintain a minimum amount of long-term debt to absorb losses, the proposal would increase the options available to resolve such banks in case of failure," the regulators said. The other proposal would mandate banks with more than $250 billion in assets develop so-called "living wills," which are strategies for "rapid and orderly resolution under bankruptcy in the event of material financial distress or failure." Alongside the two proposals, two Fed governors also voiced their opinions on the changes being requested. Governor Christopher Waller said he backed putting out the proposal on long-term debt, but added he had "concerns about its calibration." He did not comment on the second proposal. Governor Michelle Bowman took a more critical view, supporting the publication of a request for comment on the long-term debt proposal -- "with reservation" -- while opposing the second proposal. Comments on the proposed rules are due by 30 November 2023, regulators said. The post US regulators unveil new bank rules to improve financial stability appeared first on Daily Tribune......»»
Digital venture Lentra launches local ops
A new digital lending software-as-a-service platform has officially launched local operations on Monday to help promote financial inclusion among the growing and digitally savvy population in the country. Armed with $78 million of recently secured Series B Funding, Lentra targets to provide financial lending services to retail stores and small to medium enterprises. The company has committed to leveraging over 60 financial institution partners to touch a significant slice of the underbanked population. “Demand for Retail and SME loans presents a huge opportunity for most banks in the Philippines. With a rising youth population and favorable policies to encourage financial inclusion, Lentra’s entry into the Philippines is timely,” Joel Del Valle, Lentra Country General Manager for the Philippines, said. “We will enable our banking ecosystem to keep pace with digitization and to accelerate financial inclusion,” he added. As such, Lentra CEO and Founder D Venkatesh also conveyed that the Philippines’ potential will help the company broaden its cross-country solution offerings. For Credit Information Corporation President and CEO Ben Baltazar, Lentra’s launch will help reduce the current 'time to decision' for small businesses and consumer lending, which can sometimes take around three to five weeks. “The drive to modernize lending systems is imperative to boost efficiency and agility in alignment with the country's economic growth aspirations,” Baltazar said. Founded in 2019, Lentra offers digital lending through its secure and scalable platform. It equips banks and non-banking financial institutions to create customized lending products and enhance customer experiences, through its API-driven modular architecture. Its lending platform currently serves over 60 financial institutions, and has processed over $20 billion worth of loan applications, with 2 million loans being processed monthly. The post Digital venture Lentra launches local ops appeared first on Daily Tribune......»»
Loan process simplified for DepEd teachers
City Savings Bank, the thrift arm subsidiary of the Aboitiz-led Union Bank of the Philippines, continues to make headway with its groundbreaking Loan Ranger Mobile App, which caters to the banking needs of Department of Education teachers. The mobile app provides public school teachers a fast, convenient and secure way to check their savings and loan account balances, as well as apply for a reloan anytime, anywhere. Over 170,000 DepEd teachers and employees have enrolled in Loan Ranger Mobile. True to its tagline “Simple is Good,” CitySavings has simplified the loan process for DepEd teachers. With Loan Ranger Mobile, teacher-clients can view their account balance in real time. If they qualify for a reloan, they can simply apply using the app, without having to visit a CitySavings branch. They can also check the status update of their loan application. Angelica Loretizo of Aurora Elementary School in Quezon Province said using the app now saves her long hours of travel to and from the branch. “The CitySavings Loan Ranger Mobile is very easy to use. I no longer have to worry about spending time commuting. It’s very convenient for teachers like me with just a few clicks to make our transaction. I hope all banks will have this kind of customer service,” Loretizo said. One of the key features of Loan Ranger Mobile is its simplicity and user-friendly interface. The app is designed to ensure a seamless navigation experience, making it accessible to all DepEd teachers, regardless of their level of technological expertise. The intuitive layout and easy-to-understand instructions enable users to easily perform banking transactions, eliminating the need for time-consuming visits to bank branches. It is also easy to register with Loan Ranger Mobile, which is available to download on Google Play Store, Huawei AppGallery and Apple App Store. Teachers can sign up with their existing CitySavings account or card number and validate their registration with a one-time password. They can then add their other savings and loan accounts with CitySavings to check their balances and pay bills. Soon, they can receive and transfer funds, and earn and redeem rewards. Recognized by International Finance Awards as the Most Innovative Savings Bank in the Philippines, CitySavings is committed to delivering exceptional, technology-driven banking experiences to its customers. This innovative solution further cements CitySavings’ vision to be the leading mass market bank in the country and the bank’s contribution to the Aboitiz Group’s Great Transformation growth strategy to become the Philippines’ first techglomerate, propelled by technology and a renewed entrepreneurial mindset. The post Loan process simplified for DepEd teachers appeared first on Daily Tribune......»»
Topping-off ceremony marks DoubleDragon milestone
Less than a year before its completion, the topping-off ceremony held Tuesday for the ASCOTT-DD Meridian Park marks a milestone for DoubleDragon, nearly five years after concluding a partnership with Singapore-based Ascott Ltd. The building structure and topmost floor of the ASCOTT at DD Meridian Park project have been completed. "ASCOTT-DD Meridian Park, with over 300 luxury serviced residences located right behind DoubleDragon Plaza, is expected to be operational and generate recurring revenues by 2024," the developer said. [caption id="attachment_175653" align="aligncenter" width="1024"] Perspectiveof Ascott-DDMeridian Park.[/caption] The five-hectare DoubleDragon Meridian Park complex is expected to fully develop by 2024 and become a mature prime hard asset portfolio. The premium luxury development ASCOTT-DD Meridian Park will complete and further enhance the mix of the whole complex as it is positioned to be the Mini-CBD (Central Business District) in the Bay Area of Pasay City. The Ascott Limited is a subsidiary of Singapore-based property company Capital Land, which operates worldwide and will manage Ascott-DD Meridian Park. DoubleDragon Plaza is LEED Gold certified and currently houses two government agency headquarters, namely PEZA (Philippine Economic Zone Authority) and TIEZA (Tourism Infrastructure Economic Zone Authority), and expects to welcome an additional third government agency soon to relocate its headquarters in the complex, in addition to many private corporate head offices. Upon completion, the DoubleDragon Plaza at DD Meridian Park as a complex will bring a distinct advantage to a variety of office tenants, whether corporations, government agencies or BPO companies, given its prime landmark location with various top food chain brands. [caption id="attachment_175654" align="aligncenter" width="603"] DoubleDragon Plaza at DD Meridian Park is designed to be a mini central business district in the Bay area given its prime landmark double corner location at EDSA, Roxas Boulevard and Macapagal Avenue.[/caption] These early, famous brands, such as Jollibee, Mang Inasal, and many others, are confirmed tenants. "DD Meridian Park is like a mini-CBD in the Bay Area, being the only complex in the area that has eight commercial banks (Landbank, RCBC, PNB, BPI, AUB, Unionbank, Chinabank and BDO), making it uniquely convenient for office tenants to complete their banking transactions all within their proximity," the developer added. These dining and banking options are further complemented by a full-sized supermarket, MerryMart Grocery, on the ground floor of DoubleDragon Plaza. The complex also houses thousands of parking slots, with a separate, conveniently located large parking area in the basement dedicated to outside customers who visit DD Meridian Park for business meetings or leisure. DoubleDragon Plaza is located in a landmark double corner location, just a 10-to-15-minute drive to NAIA airport via NAIAX, a few minutes drive to the top three convention centers in the Philippines (PICC, SMX, and World Trade Center) and not too far from other CBDs in Metro Manila. The post Topping-off ceremony marks DoubleDragon milestone appeared first on Daily Tribune......»»
Paleng-QR now available in Mandaue
The city government of Mandaue in Cebu has launched the digital payment Paleng-QR as it helps the Bangko Sentral ng Pilipinas expands the population of Filipino adults with bank accounts. “Paleng-QR aims to strengthen the financial resilience of Filipinos and help them maximize economic opportunities through inclusion in the formal financial system,” BSP Governor Eli Remolona Jr. said in a statement released Friday. Payments facilitated Paleng-QR facilitates payments for various purchases of businesses and customers at public markets by scanning QR codes using their e-wallets and banking mobile apps which offer other financial services. “This then leads to access to other welfare-enhancing financial services, such as formal credit in a digital way, and then access to savings, insurance, and of course, investing,” Atty. Charina B. De Vera-Yap, BSP’s financial inclusion and consumer empowerment officer, said. BSP targets to increase bank account holders from 51 percent of Filipino adults to 70 percent and cashless payments up to 50 percent of all retail transactions this year. Enabling Filipinos to thrive in digital era “We aim to enable more Filipinos to thrive in this digital era. The Department of the Interior and Local Government or DILG fully supports the Paleng-QR because we believe in this policy research-backed project, which emphasizes that in order for Filipinos to really adopt cashless transactions, the palengke is the right place to start,” DILG regional director Leocadio Trovela said. According to Fintech Alliance Philippines, the majority or 37 percent of the 285 digital financial firms in the country focused on e-payments last year, while 20 percent offered loans. Filipinos who are capable of owning bank accounts could increase from 65 million to 85 million, or 30 percent higher, by 2030 as digital wallet providers and banks become more popular, data from global market analyst McKinsey & Company revealed. The post Paleng-QR now available in Mandaue appeared first on Daily Tribune......»»
Security Bank wins award at Asian Banking and Finance Retail Awards
Security Bank Corporation bagged the New Consumer Lending Product of the Year award at the Asian Banking and Finance Retail Banking Awards 2023 for its Complete Cashback Platinum Mastercard. The Complete Cashback Platinum Mastercard was lauded for having the best-in-class rewards and rebate program for practical spending. The tiered rebate structure covers the most relevant everyday spend categories of cardholders: 5 percent rebate on groceries, 4 percent rebate on gas, 3 percent rebate on utilities, 2 percent rebate on dining, and 1 percent rebate on shopping. Moreover, the card offers supplemental benefits like airport lounge access (i.e., Marhaba Lounge at NAIA Terminals 1 and 3), e-commerce purchase protection, and exclusive shopping and dining offers. The card was also recognized for its overall proposition and convenience in terms of experience. Now in its 18th year, the Asian Banking and Finance Retail Banking Awards honored retail banks and financial institutions in the Asia Pacific region for their innovative products, services, and solutions that made a positive impact on customers. The recognition is yet again a testament to the commitment Security Bank shows through its compelling product offerings. Over the years, the Bank has further strengthened the market appreciation of its retail banking business despite the changing market conditions by staying true to its core—providing what customers want and need and investing in what matters to them. “We’re thrilled to receive the ‘New Consumer Lending Product of the Year’ award for our Complete Cashback Platinum Mastercard,” said Maricar Filart, SAVP and Product Management & Communications Head at Security Bank. “This recognition reflects our commitment to providing innovative financial solutions that truly enhance our customers’ lives. We are dedicated to continuously improving our products and setting new standards for excellence in the industry.” In its pursuit to become the most customer-centric bank in the Philippines, Security Bank also recently received praise for its outstanding achievements from other award-giving bodies such as Alpha Southeast Asia and Asiamoney for being the Best Retail Bank in the Philippines and Best Bank for High-Net-Worth clients, respectively. The post Security Bank wins award at Asian Banking and Finance Retail Awards appeared first on Daily Tribune......»»